One of the more important measures investors consider when analyzing a stock is it's relative liquidity. Sometimes it's obvious and sometimes you need to dig a little deeper. The following table identifies the 16 companies in my current tracking list and ranks them in order of declining liquidity as measured by the number of times per year their issued and outstanding stock turns over in the open market.
As a general rule, companies toward the top of the list have a lot of interest from hot money and companies toward the bottom have little or no interest from hot money.
|China BAK Battery||CBAK||63,816,276||54,441,200||0.85|
While Turnover Frequency is not an obvious metric for retail investors, it is a critical pricing consideration when a company is negotiating deal terms for a new offering and the general rule is the lower the Turnover Frequency, the higher the discount.
Disclosure: I am long AXPW.